Tianqi’s fourth-quarter net loss was below the midpoint of its preliminary announcement. The results missed our expectation mainly due to the weak lithium compound segment and drop in equity income. Due to the plunging lithium prices in the quarter, gross margin tanked 7 percentage points year over year, mostly dragged by lithium compound segment margin weakness.
Lithium demand would remain resilient, driven by vehicle electrification and the lag in new supply to meet demand growth. The lithium price is expected to recover from the current low level in the next few years.
Decrease in the price of lithium products or changes in the current and expected supply/demand dynamics of lithium would significantly affect Tianqi’s profitability, resulting in volatility and uncertainty in earnings forecast.
|
Metric
|
09696
|
01772
|
ALB
|
|---|---|---|---|
Price/Earnings (Normalized) | 5.62 | 14.32 | 5.18 |
Price/Book Value | 0.82 | 0.87 | 1.44 |
Price/Sales | 1.08 | 1.24 | 1.41 |
Price/Cash Flow | 1.92 | 9.28 | 4.78 |
|
Metric
|
09696
|
01772
|
ALB
|
|---|---|---|---|
Quick Ratio | 1.62 | 0.81 | 0.77 |
Current Ratio | 2.17 | 1.39 | 1.47 |
Interest Coverage | 92.63 | 7.24 | 2.71 |
|
Metric
|
09696
|
01772
|
ALB
|
|---|---|---|---|
Return on Assets (Normalized) | 43.45% | 3.08% | 14.67% |
Return on Equity (Normalized) | 63.19% | 5.71% | 28.28% |
Return on Invested Capital (Normalized) | 51.17% | 4.20% | 20.38% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
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LAAC
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CMP
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